Consumers who are suffering from credit card debt may benefit from options like a credit card debt forbearance opportunity or a debt repayment assistance program, like debt management plans offered through credit counseling agencies. Options that offer help for troubled consumers who are facing a difficult financial time or setbacks in their life need to be explored early so that consumers can avoid more severe measures or greater financial setbacks, so many individuals often begin by either speaking with creditors or talking to a credit counselor, so that they can get on the right track in terms of finding debt relief from their credit cards or other forms of consumer debt obligations.
Many consumers are often advised to contact their creditors early if they are facing these financial problems as some credit card lenders may offer debt relief assistance, like a period of reduced payments or even debt forbearance. While consumers who are usually offered forbearance options are those who have an excellent payment history and are in a good financial position, meaning they have a good credit score and history, there may be other opportunities available to cardholders who can show that factors like unemployment have led to their economic troubles and, the reason they are seeking help is not simply due to spending beyond their means.
However, some consumers turn to a credit counseling organization as a way to help them get in a better financial position through smarter budgeting practices and habits, but in some cases a debt management plan may be necessary for consumers. Yet, when it comes to a debt management plan, the FTC states that, “A DMP alone is not credit counseling, and DMPs are not for everyone. You should sign up for one of these plans only after a certified credit counselor has spent time thoroughly reviewing your financial situation, and has offered you customized advice on managing your money.”
Consumers who seek out debt management aid could benefit as they will typically receive a reduced payment from their creditors but will meet the entirety of their debt obligation and, when this is done through a proper credit counseling agency, it can do minimal damage to a consumer’s credit score or may not affect their credit rating at all. However, before consumers turn to this option, they must, once again, either try budgeting or simply living within their financial means before taking these steps, as there are some individuals who may turn to either a management plan or settlement program, but could have avoided these processes altogether.
While consumers can implement personal practices to help them find debt relief from their credit card burden, when a credit counseling agency is sought out, a great deal of research needs to be done by a consumer so that if credit counseling is given it will be the best possible advice from an accredited organization that a consumer can get, and if further steps need to be taken, like a debt management plan, they will be in a position where they’re working with an organization that has their best financial interests in mind.